B-155205, JAN. 13, 1965

B-155205: Jan 13, 1965

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TAFFET REPRESENTED IN ITS BID THAT IT WAS A PERSISTENT LABOR SURPLUS AREA CONCERN AND THAT A SUBSTANTIAL PORTION OF THE CONTRACT FOR THE SET-ASIDE WOULD BE PERFORMED IN A PERSISTENT LABOR SURPLUS AREA. NEGOTIATIONS FOR THE SET-ASIDE PORTION WERE CONDUCTED IN ACCORDANCE WITH NOTE 5 OF THE INVITATION ENTITLED "NOTICE OF LABOR SURPLUS AREA SET ASIDE.'. TAFFET WAS ENTITLED TO FIRST PRIORITY IN THE NEGOTIATION FOR AWARD OF THE SET-ASIDE PORTION BECAUSE NO OTHER ELIGIBLE BIDDER WAS IN A HIGHER SURPLUS-LABOR AREA CATEGORY. THAT IS OLD FORGE. AWARD OF THE SET ASIDE PORTION WAS MADE TO TAFFET ON SEPTEMBER 17. IT IS YOUR CONTENTION. WHICH IS NOT A PERSISTENT LABOR SURPLUS AREA. IT IS YOUR VIEW THAT THE CONTRACT REQUIREMENT FOR SUBSTANTIAL PERFORMANCE OF THE SET-ASIDE PORTION IN A PERSISTENT LABOR SURPLUS AREA CANNOT BE MET BY TAFFET.

B-155205, JAN. 13, 1965

TO AUDIGER, INC.:

BY LETTER DATED SEPTEMBER 23, 1964, YOU QUESTIONED THE ELIGIBILITY OF TAFFET ELECTRONICS, INC., FOR THE AWARD MADE BY THE UNITED STATES ARMY ELECTRONICS COMMAND UNDER THE LABOR SURPLUS AREA SET-ASIDE PORTION OF INVITATION FOR BIDS NO. AMC/E/-36-039-64-599-K.

TAFFET REPRESENTED IN ITS BID THAT IT WAS A PERSISTENT LABOR SURPLUS AREA CONCERN AND THAT A SUBSTANTIAL PORTION OF THE CONTRACT FOR THE SET-ASIDE WOULD BE PERFORMED IN A PERSISTENT LABOR SURPLUS AREA. NEGOTIATIONS FOR THE SET-ASIDE PORTION WERE CONDUCTED IN ACCORDANCE WITH NOTE 5 OF THE INVITATION ENTITLED "NOTICE OF LABOR SURPLUS AREA SET ASIDE.' AS THE LOWEST RESPONSIVE BIDDER ON THE NON-SET-ASIDE PORTION, TAFFET WAS ENTITLED TO FIRST PRIORITY IN THE NEGOTIATION FOR AWARD OF THE SET-ASIDE PORTION BECAUSE NO OTHER ELIGIBLE BIDDER WAS IN A HIGHER SURPLUS-LABOR AREA CATEGORY. IN THAT CONNECTION YOU REPRESENTED IN YOUR BID THAT YOU WOULD PERFORM A SUBSTANTIAL PORTION OF THE SET-ASIDE CONTRACT WORK IN A SUBSTANTIAL LABOR SURPLUS AREA AS WELL AS IN A PERSISTENT LABOR SURPLUS AREA. DURING NEGOTIATIONS FOR AWARD OF THE SET-ASIDE PORTION, TAFFET ADVISED THE PROCUREMENT AGENCY THAT MORE THAN 50 PERCENT OF THE TOTAL DOLLAR VALUE OF THE SET-ASIDE CONTRACT WOULD BE PERFORMED IN PERSISTENT LABOR SURPLUS AREAS, THAT IS OLD FORGE, PENNSYLVANIA, FOR THE PRODUCTION OF REELS AND ASSEMBLY, AND PROVIDENCE, RHODE ISLAND, FOR THE PRODUCTION OF WIRE CABLE BY THE GENERAL CABLE CORPORATION. ON THE BASIS OF TAFFET'S ELIGIBILITY UNDER THE LABOR SUPRLUS AREA SET-ASIDE PROVISIONS OF THE INVITATION AND SINCE IT AGREED TO MATCH ITS BID ON THE NON-SET-ASIDE PORTION, WITH A DECREASE OF $67 FOR WAIVER OF PREPRODUCTION SAMPLES, AWARD OF THE SET ASIDE PORTION WAS MADE TO TAFFET ON SEPTEMBER 17, 1964.

IT IS YOUR CONTENTION, BASED ON ADVICE FROM THE GENERAL CABLE CORPORATION THAT THE WIRE MAY ONLY BE MANUFACTURED AT ITS PLANT AT CASS CITY, MICHIGAN, WHICH IS NOT A PERSISTENT LABOR SURPLUS AREA. APPARENTLY, ON THE BASIS OF SUCH ADVICE, IT IS YOUR VIEW THAT THE CONTRACT REQUIREMENT FOR SUBSTANTIAL PERFORMANCE OF THE SET-ASIDE PORTION IN A PERSISTENT LABOR SURPLUS AREA CANNOT BE MET BY TAFFET. CONTRARY TO YOUR IMPRESSION, HOWEVER, THE PROCUREMENT FILE ESTABLISHES THAT THE WIRE CABLE TO BE SUPPLIED TO TAFFET BY THE GENERAL CABLE CORPORATION IS TO BE PRODUCED AT THE CORPORATION'S PLANT AT PROVIDENCE, RHODE ISLAND, AND NOT AT ITS PLANT IN CASS CITY, MICHIGAN. WE ARE ALSO ADVISED BY THE PROCUREMENT AGENCY OF THE FOLLOWING ADDITIONAL INFORMATION WHICH FURTHER SUBSTANTIATES THE PLACE OF PERFORMANCE BY THE GENERAL CABLE CORPORATION. THIS INFORMATION IS AS FOLLOWS:

"ADDITIONAL VERIFICATION HAS ALSO BEEN SUBMITTED BY TAFFET. THIS IS IN THE FORM OF A LETTER TO THEM FROM GENERAL CABLE CORPORATION, DATED 10 NOVEMBER 1964 AND ATTACHED AS TAB Z-2. IN ESSENCE, THIS LETTER STATES:

"/1) THE STATEMENT THAT WM-130 CABLE CAN BE PRODUCED ONLY IN THEIR CASS CITY, MICHIGAN PLANT IS FALSE.

"/2) THE CABLE TO BE PURCHASED BY TAFFET FROM THEM FOR THE SET ASIDE PORTION OF IFB AMC/E/-36-039-64-599-K WILL BE MANUFACTURED AT THEIR PROVIDENCE, R. I. PLANT.'